DGAP-News: DIC Asset AG: Letter to the Shareholders
(firmenpresse) - DGAP-News: DIC Asset AG / Key word(s): Miscellaneous
DIC Asset AG: Letter to the Shareholders
01.08.2012 / 08:10
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Letter to the Shareholders
- MainTor Quarter: DIC markets another two major construction stages
- Total investment volume EUR 150 million
- DIC Asset AG benefits from early marketing success
Dear Shareholders, Ladies and Gentlemen,
Today, it is with pleasure that we bring you excellent news concerning your
commitment in DIC Asset AG. In a single transaction, DIC Group just
marketed another two sub-projects of its 'MainTor Quarter' development in
Frankfurt. With construction not yet started, it sold the building
complexes 'MainTor Panorama' (office space) and 'MainTor Patio' (rental
apartments) within the framework of a forward deal toÄrzteversorgung
Westfalen-Lippe (ÄVWL), a German pension fund. The investment volume totals
approximately EUR 150 million. Construction of both projects is scheduled
to start sometime during the first half of 2013.
This is also a great piece of news for shareholders of DIC Asset AG (German
Securities Code Number WKN 509840/ ISIN DE0005098404), which holds a
40-percent interest in the project. The transaction will permit DIC to move
ahead with the development of the MainTor Quarter much quicker than
planned: With approximately EUR 340 million committed, more than 50 percent
of the project volume are either marketed or under construction now.
Accordingly, this step marks a significant milestone in this urban quarter
development.
A sale of this magnitude to a renowned German investor well ahead of the
start of construction highlights once again the great window of opportunity
that MainTor Quarter implies. Moreover, the transaction implies other
positive entrepreneurial and financial effects beyond the successful sale
of the two construction stages:
- Following the forward sale of 'MainTor Primus' in 2011, and the
70-percent forward lease commitment for 'MainTor Porta' at the
beginning of this year, this latest transaction secures our exit from
these two sub-projects while implying a further substantial reduction
of the project risk.
- Due to the agreed purchase price instalments, the construction of the
two building complexes may go ahead without bank financing. The
investment loan included in the purchase price are granted at very
favourable conditions, not least when compared to the current financing
market.
- As a result of the transaction structure, the realisation of the two
construction stages will require no additional equity.
- In addition, the pro-rata financing of the MainTor area will be repaid
earlier than planned. The first instalment of the purchase price will
be used to redeem the existing financing for the two sub-projects,
significantly lowering the debt exposure of the project.
- Successful early lettings for 'MainTor Panorama' and 'MainTor Patio'
could help the company to incrementally realise a net profit for DIC
Asset AG even during the construction phase.
Here are additional details on the transaction:
The pension fund has earmarked the two properties for the pools of
segregated assets of specialised KAG funds by IVG Institutional Fund
('MainTor Panorama') and Patrizia Wohninvest ('MainTor Patio'), which will
handle the asset and property management. DIC retains the overall
responsibility over project development, construction execution, and
letting.
The office property 'MainTor Panorama' provides 13,500 sqm in commercial
space and 70 parking spaces in an underground car park. The architecture is
realised by the architectural firm of Professor Christoph Mäckler
Architekten. DIC plans to have the 'Panorama' building completed and ready
for occupation by mid-2015.
'MainTor Patio', an asset located at the plaza of the MainTor Quarter,
comprises around 6,000 sqm in lettable area and 134 underground car park
slots. Around 5,200 sqm are intended for more than 90 rental units. Another
800 sqm in commercial area are set aside for gastronomy, wellness and a
children's day-care centre, creating a convenient supply infrastructure for
the residents of the entire MainTor Quarter. The project is handled by the
architectural firm of KSP Jürgen Engel Architekten. DIC intends to have the
'Patio' complex completed and ready for occupation by the end of 2014.
In a parallel effort, preparations are under way for selling around 80
condominiums with a total residential area of 9,800 sqm at the sub-project
'MainTor Palazzi' to owner-occupiers and investors, with the marketing
scheduled to kick off at the beginning of next year. Construction of these
housing complexes directly on the bank of the Main river is to begin in
summer of 2013.
This successful and innovative marketing transaction has confirmed the
positive expectations regarding the MainTor project. The market appreciates
the concept of independently realised sub-projects for different groups of
occupiers and investors. We are convinced that the realisation of this
prominent urban quarter development in its unique riverfront location in
Frankfurt's financial district will continue to proceed swiftly and
according to schedule.
Kind regards,
Ulrich Höller (CEO) Markus Koch (CFO)
P.S.: For more information about DIC Asset AG, please visit us on the
Internet at www.dic-asset.de. For details on the MainTor project, please go
to www.maintor-frankfurt.de.
End of Corporate News
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01.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Germany
Phone: +49 69 9454858-0
Fax: +49 69 9454858-99
E-mail: info(at)dic-asset.de
Internet: www.dic-asset.de
ISIN: DE0005098404
WKN: 509840
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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179843 01.08.2012
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Datum: 01.08.2012 - 08:10 Uhr
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